Platinum vs. Gold - Anyone else seeing value here, or
- •I’m comfortable with my position there, especially with the current economic climate, but I've been looking at platinum lately.
- •The price action over the last year or two just seems… off.
- •I distinctly remember platinum trading at significant premiums to gold back in the early 2000s, even into the 2010s.
Been in the gold and silver game for decades, ever since my younger days in the Navy when I first started looking at tangible assets beyond my pension. My portfolio is pretty heavily weighted towards physical gold, a decision I made back when I was still stationed in Norfolk and seeing the instability bubbling up globally. I’m comfortable with my position there, especially with the current economic climate, but I've been looking at platinum lately. The price action over the last year or two just seems… off.
I distinctly remember platinum trading at significant premiums to gold back in the early 2000s, even into the 2010s. Now it’s practically half the price of gold. With industrial demand picking up, particularly in automotive catalysts (even with the EV push, hybrids still use plenty), and the supply constraints from South Africa, it feels like there’s a real disconnect from its intrinsic value. I've been doing my due diligence, looking at different reports, and it seems like the consensus is that it should be trading higher.
I’ve been considering allocating a small percentage, maybe 5-10% of my precious metals portfolio (which is currently sitting between $2-3 million), into platinum, thinking about 1 oz American Platinum Eagles. It wouldn't replace any of my existing gold holdings – those are foundational for me – but rather be a new allocation for growth. Anyone else in Virginia Beach, or elsewhere for that matter, looking at platinum with a similar perspective? Or am I missing something critical here?
It’s a different beast than silver, with much tighter markets and less liquidity, which I understand. But the long-term fundamentals for gold are always there, and I feel platinum might offer some significant upside potential if it reverts to its historical relationship with gold. Is this a contrarian play, or just a fool's errand? I’m interested to hear some other seasoned investors' thoughts, especially if you’ve been through a few market cycles like I have.